8/26/2009
To FEI Members:
As the summer begins to cool down, we anticipate regulatory and legislative reform activity to heat up, as key openings at regulatory agencies are being filled and Congress prepares to return from its August recess.
Yesterday, President Barack Obama nominated Ben Bernanke, chairman of the Federal Reserve Board, to a second term. (The appointment is subject to Senate confirmation.) FEI issued a statement yesterday applauding the reappointment.
Separately, U.S. Securities and Exchange Commission Chairman Mary L. Schapiro appointed James L. Kroeker as chief accountant of the Office of the Chief Accountant at the SEC.
FEI will be here to keep you informed as members of Congress return from recess after Labor Day to tackle many of the administration’s priorities and as regulatory reform takes shape. This e-newsletter is one way keep you informed on developments on derivatives, financial instruments among many other issues. Please consider providing your thoughts on such issues through our upcoming CFO outlook survey.
We also have an exciting line-up of speakers at our 28th Annual Current Financial Reporting Issues conference (CFRI), taking place in New York City on Nov. 16-17, and we encourage you to also join us at our Hall of Fame gala on Nov. 16. Visit our Web site for additional information. We also look forward to seeing you at other FEI conferences and events.
Marie N. Hollein
mhollein@financialexecutives.org
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Conversion to International Financial Reporting Standards (IFRS) from U.S. generally accepted accounting principles (U.S. GAAP) is more than just an accounting exercise. For many technology companies it can significantly affect the financial reporting for research and development expenditures. Where IFRS is likely to have the biggest impact is its requirement to capitalize development costs that meet certain criteria. Executives in the sector need an early understanding of the potential ways in which conversion to IFRS may affect their financial reporting.
Please refer to KPMG’s recent paper entitled IFRS for Technology Companies: Closing the GAAP R&D Activities and Related Intangible Assets for more details.
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Table of Contents
REGULATORY AND LEGISLATIVE NEWS
· Bernanke Nominated To Second Term As Fed Chairman
· SEC Posts ‘Dear CFO’ Letter On MD&A Disclosure Of Loan Losses
· Kroeker Appointed Chief Accountant of SEC
· FASB Discusses Discontinued Operations
· Liability-Equity Project To Be Discussed This Week
· Litigation and Other Loss Contingencies Addressed By FASB
· Financial Instruments Scope, Definition Discussed By FASB
· Changes To Securitization, Asset Sale Rules Featured on FASB Webcast
· IASB Seeks Comment On Pension Discount Rate Proposal
· SEC Seeks Alternative To Uptick Rule
· SEC, CFTC To Hold Joint Meetings On Harmonization
· Bernanke faces contentious round of hearings, but will likely be confirmed
· Administration and Congressional Economists Continue to Paint a Dire Fiscal Picture
· ‘Cash-for-Clunkers’ May Become a Model for Stimulative Programs
FERF UPDATE
· Segregation of Duties Checklist
· The Value and Effectiveness of Corporate Anti-Fraud Programs
· Technology Issues for Financial Executives – 2009 Annual Report
· Help us Benchmark the Finance Function!
· Become a CPE ‘Pilot Tester’
WEBCASTS
· KPMG & FEI’s In-Depth Accounting Webcast
· CFO Empowerment through Budgeting + Performance Dashboards
· U.S. International Tax Reform-Beyond the Green Book; Reassessing Transfer Pricing in a Slow Economy
CONFERENCES & EVENTS
· Fall Private Company Forum
· 4th Annual Hall of Fame Gala
· Current Financial Reporting Issues (CFRI) Conference
FEI JOB LISTINGS
· Job ID: 20601- Director, External Financial Reporting
WELCOME TO OUR NEW MEMBERS!
RESOURCES AT WWW.FINANCIALEXECUTIVES.ORG
REGULATORY AND LEGISLATIVE NEWS
Bernanke Nominated To Second Term As Fed Chairman
Yesterday, President Barack Obama nominated Ben Bernanke to a second term as chairman of the Federal Reserve Board. The appointment is subject to Senate confirmation.
FEI issued a statement earlier today, applauding the President’s reappointment of Bernanke, and commending Bernanke for his creativity, tenacity and guidance of our economy through one of the most difficult and uncertain periods in our nation’s financial history. FEI Summary.
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SEC Posts ‘Dear CFO’ Letter On MD&A Disclosure Of Loan Losses
Last week, the U.S. Securities and Exchange Commission posted a ‘Dear CFO’ letter - more formally called the "Sample Letter Sent to Public Companies on MD&A Disclosure Regarding Provisions and Allowances for Loan Losses.” The letter, issued by the SEC’s Division of Corporation Finance, specifies disclosures that the SEC believes companies should consider including in the Management's Discussion and Analysis section of their filings.
Separately, the SEC also posted an Interpretive Release entitled: Commission Guidance Regarding the Financial Accounting Standards Board's Accounting Standards Codification. The release states: “references in the commission’s rules and staff guidance to specific standards under U.S. GAAP should be understood to mean the corresponding reference in the FASB Codification.”
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Kroeker Appointed Chief Accountant of SEC
Yesterday, U.S. Securities and Exchange Commission Chairman Mary L. Schapiro appointed James L. Kroeker chief accountant in the Office of the Chief Accountant for the SEC. Prior to his appointment, Kroeker was serving as acting chief accountant. Read more in the SEC press release.
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FASB Discusses Discontinued Operations
Earlier today, the Financial Accounting Standards Board began redeliberations on its earlier proposal on Discontinued Operations. There was some discussion on exploring a model that defines “significant” segments based on the contribution of that segment to trends and forecasts and considers continuing involvement. Other models discussed included reportable segments, components, operating segments and contribution to a “strategic shift” and the interplay between financial statement presentation and disclosures.
FASB is also considering convergence issues, and this project is likely to be on the agenda for the next joint meeting of FASB and the International Accounting Standards Board in October. For results of today’s meeting, refer to FASB’s Summary of Board Decisions, generally posted same-day or next-day in FASB's News Center.
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Liability-Equity Project To Be Discussed This Week
FASB is meeting tomorrow on financial instruments with characteristics of equity (formerly called the liability-equity project). Results of the meeting will be posted in FASB's News Center.
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Litigation and Other Loss Contingencies Addressed By FASB
At last week’s board meeting, FASB agreed on disclosure principles that will be included in its final standard on disclosure of certain loss contingencies, including litigation contingencies. FEI summary.
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Financial Instruments Scope, Definition Discussed By FASB
Also at last week’s board meeting, FASB decided on a definition of financial instruments and on the scope of its financial instruments project. FEI summary.
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Changes To Securitization, Asset Sale Rules Featured on FASB Webcast
Earlier this week, FASB held a webcast on “Amendments to the Accounting for Securitizations and Special Purpose Entities.” The one-hour webcast discussed ways entities will account for securitizations and special-purpose entities under two standards issued in June: FAS 166, Accounting for Transfers of Financial Assets, and FAS 167, Amendments to FASB Interpretation No. 46(R). The archived webcast is available here.
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IASB Seeks Comment On Pension Discount Rate Proposal
Last week, IASB proposed an amendment to IAS 19, Employee Benefits, regarding the discount rate for pensions and other post-employment benefits. Comments are due Sept. 30. IASB proposal.
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SEC Seeks Alternative To Uptick Rule
Last week, the SEC posted for public comment an alternative proposal on the uptick rule. Comments are due 30 days after the notice is published in the Federal Register. SEC press release.
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SEC, CFTC To Hold Joint Meetings On Harmonization
Also last week, the SEC and Commodity Futures Trading Commission announced they will hold joint meetings on harmonization of their market regulation functions. The agencies also issued a related call for public comment. SEC press release.
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Bernanke faces contentious round of hearings, but will likely be confirmed
Politico reports, “Ben Bernanke may be a shoo-in for confirmation as Federal Reserve chairman, but that doesn't mean his confirmation hearing will be painless. Senate aides from both parties are predicting a contentious hearing, with heavy criticism from both the left and the right.” Read more here.
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Administration and Congressional Economists Continue to Paint a Dire Fiscal Picture
The Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) released updated economic and budget projections. Assuming expiration of most of the 2001 and 2003 tax cuts after 2010, as scheduled under current law, OMB estimates that the federal budget deficit for 2009 will total $1.549 trillion and projects a 10-year cumulative budget deficit of $6.259 trillion under current laws and policies. CBO estimates that the federal budget deficit for 2009 will total $1.6 trillion.
OMB also released revenue estimates for all of the international tax proposals in the president's budget showing they are estimated to raise $150.9 billion over 10 years - down from $209.9 billion in the original estimation. More information can be found by clicking here.
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‘Cash-for-Clunkers’ May Become a Model for Stimulative Programs
When Congress passed the $4,500 auto trade-in program, it was hard to estimate the demand for new, fuel-efficient cars “Cash-for-Clunkers” would create. Beginning in July and ending Aug. 24, the program helped to ignite demand within a struggling industry. Recent reports have indicated that the effort could provide lawmakers an example of a simulative program that could serve as a model for future economic recovery legislation. For now, the administration says it has no plans to ask Congress for more money for the program. Click here for more information.
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FERF UPDATE
Segregation of Duties Checklist
BDO Consulting’s Fraud prevention practice presents its 2009 Segregation of Duties Checklist. BDO has developed this tool to assist organizations in identifying fraud risks due to a lack of segregation of duties. Segregation of duties is one of the key concepts of internal controls. The concept is to separate the responsibilities in each business process.
Download the Segregation of Duties Checklist.
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The Value and Effectiveness of Corporate Anti-Fraud Programs
BDO Consulting’s study evaluates data in support of anti-fraud measures that can be taken by management, boards of directors and investors. The study covers numerous dimensions of corporate fraud, including fraud prevention and early detection, as well as the economic value driven by a comprehensive anti-fraud program.
Download the BDO Consulting Study.
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Technology Issues for Financial Executives – 2009 Annual Report
The 2009 FERF/Gartner/CFIT Technology Issues survey shows that 42 percent of IT organizations report to the CFO organization. Understanding the finance organization perspective of technology is critical for CIOs and other IT leaders. However, the relationship between finance and IT remains a challenge.
This study gives insight into opportunity areas for IT to work with finance to improve the relationship and add value to the business. By helping finance executives leverage technology to better understand profitability, more easily manage performance, and improve finance process alignment with the business, IT can positively impact finance's perception of and spending levels for technology.
Download Technology Issues for Financial Executives – 2009 Annual Report.
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Help us Benchmark the Finance Function!
FEI members have asked for benchmarking information, and FERF has responded with a new Benchmarking the Finance Function survey. This new survey has been designed to help financial executives benchmark their staffing costs and the costs of their finance function, and should take less than 30 minutes to complete.
Respondents are encouraged to preview the survey questions before completing the survey as some questions may require additional research. All responses are confidential and participants will remain anonymous.
Click here to take the survey, which will close on Aug. 31.
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Become a CPE ‘Pilot Tester’
Are you a licensed CPA who needs CPE credits Want to be the first to earn credits for newly released self-study programs and Financial Executive magazine articles Become a CPE “Pilot Tester” and earn your credits before everyone else! Contact FERF Research Associate Tom Thompson for more information.
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WEBCASTS
KPMG & FEI’s In-Depth Accounting Webcast
Sep. 10 | 2:00 p.m. Eastern | 2 hours| 2 CPE Credits
Presented by KPMG
Free for FEI Members and Nonmembers
Register here.
KPMG’s Department of Professional Practice (DPP) and Financial Executives International (FEI) are once again pleased to invite you to their popular webcast series on current accounting issues. This joint webcast is particularly relevant for controllers and accounting policy professionals who want to drill down into technical accounting topics.
The fourth webcast in this series will be held on Sept. 10; it features an in-depth discussion on two newly issued FASB standards; on Derecognition of Financial Assets and Consolidation of Variable Interest Entities. It will be co-moderated by Terry Iannaconi, KPMG’s Partner-in-Charge of Knowledge Sharing at the firm’s Department of Professional Practice, and Cheryl Graziano, VP, Financial Executives Research Foundation at FEI. KPMG partners David Reavy and Robert Malhotra will offer their insights and perspectives on the topics.
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CFO Empowerment through Budgeting + Performance Dashboards
Sept. 17 | 2 p.m. Eastern | 1 Hour | No CPE Credit
Presented by arcplan
Free for FEI Members and Nonmembers
Register here.
Join arcplan for this session full of lessons learned and how-to’s detailing how three companies implemented Budgeting, Planning and Forecasting in order to save time and make the budget a dynamic cornerstone on which to build other business performance improvement initiatives.
Learn how to:
§ Give executives an all-encompassing view of the budget, drivers and performance;
§ Add profitability modeling, driver-based budgeting and what-if scenarios to your process;
§ Isolate projects and track them inside of the overall budget;
§ Reduce the burden that the budgeting process places on the Finance team and budget owners; and
§ Implement a budgeting solution that delivers dynamic budgets that continue to deliver value throughout the year, even as assumptions and circumstances change.
This session will provide insight on the best practices used by financial and budgeting teams of successful companies, which can also be applied toward the improvement of your organization.
Speakers: Stefanie Lightman, VP of Global Marketing
Craig Barton, VP of Product Management
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U.S. International Tax Reform-Beyond the Green Book; Reassessing Transfer Pricing in a Slow Economy
Oct. 1 | 2 p.m. Eastern | 2 Hours | 2 CPE Credits
Presented by Thomson Reuters
Free for FEI Members and Nonmembers
Register here.
This two-hour webinar will provide updates on international tax reform proposals, including dual-capacity taxpayers; 367(d)/482 intangibles transfers; foreign tax credits; 80/20 rules; check-the-box; repatriation of foreign earnings in cross-border reorganizations and transfer pricing in a slow economy, including the effect on comparables and "arm's-length"; cost-sharing regulations; services regulations; and the impact of Xilinx.
Speakers Include:
§ Marjorie Rollinson, Principal, Director of International Tax Services, Ernst & Young, LLP, and contributor to Journal of International Taxation;
§ Jeffrey Maydew, Partner, Baker & McKenzie, LLP;
§ Andrew Szymulanski, Of Counsel, Baker & McKenzie, LLP;
§ Lonnie Brist, Principal, Ernst & Young, LLP;
§ Margreet Nijhof, Partner, International Tax, Baker & McKenzie Amsterdam, NV and contributor to Journal of International Taxation;
§ Kenneth Christman, Attorney, Office of Associate Chief Counsel (International) Internal Revenue Service; and
§ Frederick Chilton, Partner, McDermott Will & Emery.
Moderators:
§ Daniel Goff, Vice President, Tax, Xilinx, Inc. and Chair of TEI's International Tax Committee
§ Robert Gallagher, Managing Editor, International Tax, Thomson Reuters
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CONFERENCES & EVENTS
Fall Private Company Forum
Strategies for Growth and Governance
Oct. 21 | Summit Executive Centre | Chicago, IL
Sponsored by Grant Thornton | Hosted by FEI Chicago Chapter
FEI Members $395 | Nonmembers $495
Register here.
This one-day conference will address the diverse needs of the private company financial executive with sessions covering health care cost-containment strategies, strategic governance principles, capital markets outlook and financing alternatives in the current economic climate.
Agenda topics include:
- Financing Alternatives and Related Impact In The Current Economic Environment
- Focus On The Fundamentals: A Sustainable Approach To Cost Reduction
- Behind The Numbers: A Fiscally Fit Health Plan
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4th Annual Hall of Fame Gala
Proceeds to Benefit FERF
Nov. 16 | The New York Palace | New York
Reserve your place at this premier event!
The FEI Hall of Fame has become a tradition and a legacy for the finance profession. It recognizes those unique individuals who epitomize the performance, leadership and integrity of the most exemplary financial executives throughout their careers. Reserve your place to raise a glass and celebrate the 2009 inductees, Dennis D. Dammerman and Donald T. Nicolaisen, in formal, black-tie fashion at the Annual Gala. This year’s event will be held on the evening of Nov. 16 at The New York Palace. The 2009 Induction will once again be hosted by Master of Ceremonies, CNBC correspondent Bob Pisani.
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Current Financial Reporting Issues (CFRI) Conference
Financial Reporting in Today’s Environment
Nov. 16-17 | New York Marriott Marquis | New York
FEI Members $ 1,095 | Nonmembers $1,445
Register here.
Focused on the new administration, economic challenges and regulation reform, CFRI will detail the latest accounting and reporting developments from the FASB, SEC and IASB.
Key topics include:
- FASB/IASB Technical Accounting Update
- Future of Financial Statement Presentation
- Implementation Issues Surrounding Accounting for Business Combinations
- Revenue Recognition
- Fair Value
- XBRL
- Controller’s Roundtable on top-of-mind business issues
- Q&A With the FASB and the SEC
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FEI JOB LISTINGS
Job ID: 20601- Director, External Financial Reporting
This company is the third-largest quick-service restaurant company in the U.S.
The newly-formed company expects to pursue ongoing expansion. A consolidated support center is based in Atlanta to oversee all public company responsibilities and other central service functions, and identify substantial corporate overhead savings.
This position will be the strategic leader of the company’s public reporting function, and manages a team of six (6) finance and accounting professionals. He/she will be utilizing strong leadership and analytical thinking skills, the focus of the role is to identify and develop key strengths of the team members while implementing a seamless reporting process. The ultimate mandate is to create a world-class team and the accompanying processes to satisfy the complex reporting requirements of the consolidated company, as well as maintaining a strong compliance and controls environment, which is scalable to support continued growth.
The successful candidate will be a dynamic leader with a true desire to drive excellence via empowering team members and streamlining/improving processes for maximum effectiveness. Superior communication skills are key to developing a culture of continuous improvement and accountability and the Director, Financial Reporting will have a successful track record in managing teams effectively.
The successful candidate will possess an undergraduate degree in Accounting or a related discipline, with public accounting experience and 15-20 years of total work experience in a technical accounting capacity with a current role including SEC reporting.
For further details about this job opportunity and to view more jobs, visit the FEI Job Center at www.financialexecutives.org/careers.
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WELCOME TO OUR NEW MEMBERS!
Congratulations to all the new members accepted in the last 30 days. Click here to see a complete list.
RESOURCES AT www.financialexecutives.org
· Ask FERF
· Career Bookstore
· CPE Center
· FEI Chapters
· FEI Financial Reporting Blog
· FELIX Private Companies and Global Forums
· Financial Executive magazine
· Financial Executive Online Exclusives
· Financial Executives Research Foundation (FERF)
· Access Jobs, Resume Bank and more in the Career Center
· Knowledge Center
· Newsletter Archive
· Upcoming Events
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